Drivers for successful digital transformation in advancing environmental sustainability in manufacturing

Abstract

Digital technologies (DT) and AI are key drivers of Digital Transformation and have revolutionised how businesses operate, resulting in unprecedented progress in promoting sustainability. A critical gap in integrating environmental sustainability considerations within digital transformation (DTx) has been identified. A clear understanding of the relationship between these concepts among key stakeholders is needed to make informed decisions regarding DTx investments. The South African manufacturing sector is at a critical juncture as concerns about environmental degradation intensify and sustainable practices become imperative. Studies in a different context found that DTx has the potential to transform traditional capital–intensive manufacturing assets to enhance environmental sustainability. Through an exploratory qualitative study, this research aimed to identify key success drivers for DTx on environmental sustainability. In particular, AI's impact on greenhouse gas emission (GHG) reduction from the large manufacturing sector companies. This study uncovered eight key drivers for successfully integrating AI technologies for sustainability, defined internal and external drivers, and benefits, challenges and risks. The results indicate that while AI adoption is still in the early phase, the study found that the benefits are indirect. Findings confirmed that there are significant hurdles to overcome for a successful AI-driven DTx to advance manufacturing environmental sustainability practices. The present study will be valuable to researchers, practitioners, government and policymakers.